https://nairaeconomist.com/2023/10/21/the-importance-of-macro-environment-to-a-business-steps-to-take/

Nigeria is developing. Slowly but steadily. The factors that were prevalent 20, 40 or 60 years ago are generally on the low in the continent. Three coups recently happened in Africa without wars and counter-retaliations. Generally wars are on the low on the African continent, compared to twenty or thirty years ago in the decades that succeeded independence. The current young generation is a different generation — it has self-learned to efficiency, and maybe in some cases to perfection.

Next Self-learning: The Importance of the Macro-Environment

The former Nigerian or African generation used to say that what Government does doesn’t concern them. Recent happenings pulled the 95% inactive young into Politics. It taught them that all Government does, is their income, business and investment. The Macro-environment is the country. You cannot be bigger than the country in which you are. You can only attain to 100% efficiency of what is currently offered to you. The first is your macro environment, the later is your micro environment.

Illustrations

Suppose your potentials and the ambitions of your firm dictated a network of 45 million customers and $14 billion in annual revenues, that will be your macro environment. But if current dispensations dictated a possibility of only 35 million customers and $1.4 billion in revenues (perhaps due to bottlenecks, lack of awareness among the populace, or lower Social education on the immediate needs of your products), the later will be your micro-environment.

You could attain to just 17.5 million and $700 million of the Micro Environment figure — that will be your Management Efficiency (50%). You could attain to 26.25 million customers and $1.05 billion. A 75% Managerial efficiency. But you cannot cross the 35 million customers and $1.4 billion annual figures offered by your Micro environment, even at full potential. To do this you will have to affect the Macro Environment: the Government.

Affecting Your Macro Environment


To optimise your Macro Environment, you first have to believe that at least 25% of it is within your immediate power and that it is your duty (that cannot be outsourced) to annually optimise that 25%.

You could also take Index examples from at least one or two leading countries. In the US, about 100% of the working population (18-64) voted in the November 2020 elections. Voting therefore should be seen as a Business function. The consequence for absenteeism is loss, that should be thrice corrected (in macro manners) by other means as soon as possible.

In What Consists the Macro Environment

What constitutes the Macro Environment? The Demographics; The Government in Power; The Cultural Prevalence (right or wrong); The Regional and National Literacies; Technology; and The Entrepreneurial Macro-Structures available.

How To Affect The Macro Environment?

1. A Businessman must actively look out for, and liberally sponsor qualified candidates of his choice. He must encourage them. He shouldn’t look at this as an expense but as an annual investment to his own income returns and savings.
2. He should donate to Political parties that serve his interests. He should actively look for their account details.
3. He actively search for and encourage persons whom he thinks fit, for office.
4. He should register with a Political party he sees as best business friendly. This will help him stay abreast on issues of his relevance and activity ready.
5. He should sponsor charities, causes and non-profit activities around his direct business environment. It does not matter if he is small or medium. He should extend a hand to causes he can list out and annually.
6. He should annually spend on educating himself (and family) on technology and other improvements. He could spent little more on travels, readings and on educating another. These will help better his Macro Environment, himself (and dependents) being a unit or two in his controllable Macro Environment.